Pharmaceutical spending

It is no secret that rich countries spend lots of money on health—9.6% of GDP in 2009. Drugs' role in driving this spending is more complex. Consumption of drugs has risen, as there are more types of pills and more old patients to pop them. In 2009 OECD countries splashed out more than $700 billion on drugs, nearly one-fifth of all health spending. But without drugs health costs might have been even higher: pharmaceuticals can prevent costly hospitalisations. From 2000 to 2009 spending on drugs grew at a slightly slower pace than total outlays on health. This picture masks substantial variation. The average American shelled out $947 for drugs in 2009. Just across the border, the average Mexican spent just $249.